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U.S. federal authorities have highlighted their ongoing crusade against those accused of investment scams, Ponzi schemes, foreign currency and other market frauds. They recently referred to this group of unrelated civil and criminal cases involving financial wrongdoings as ‘Operation Broken Trust.’

Yesterday, I introduced you to a sleepy yet awesome firm called Landauer(NYSE: LDR), a specialist in radiation monitoring and analysis for labs, hospitals, and nuclear facilities worldwide. Since 1990, the stock price has quietly gone up five times in value, with its success based on a niche market, fragmented competition, and a diverse customer base. It still retains these attributes, yet I've passed on it for my portfolio. I'll explain why and then I'll show you another investment I like better.

﻿Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Margins matter. The more Limelight Networks(Nasdaq: LLNW) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why I check on my holdings' margins at least once a quarter. I'm looking for the absolute numbers, comparisons to sector peers and competitors, and any trend that may tell me how strong Limelight Networks's competitive position could be.

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